Fannie Mae Cash Flow Analysis Calculator 2021
Fannie Mae’s cash flow analysis calculator helps investors and homeowners understand their property’s financial health. By forecasting cash flows, you can make informed decisions about buying, selling, or holding onto a property.
- Enter the property’s value, down payment percentage, interest rate, and loan term.
- Specify the monthly rent and expenses.
- Click ‘Calculate’ to see the results and cash flow chart.
The calculator uses the following formula to calculate cash flow:
Cash Flow = (Monthly Rent * 12) - (Monthly Expenses * 12) - (Loan Payment * 12)
The loan payment is calculated using the formula:
Loan Payment = (Property Value - (Property Value * Down Payment)) * (Interest Rate / 12) / (1 - (1 + Interest Rate / 12)^(-Loan Term * 12))
| Down Payment (%) | Cash Flow ($) |
|---|---|
| 20 | 12,000 |
| 30 | 15,000 |
| 50 | 20,000 |
- Consider using a higher down payment to improve cash flow.
- Regularly review and update your cash flow analysis to account for changes in rent, expenses, or interest rates.
- Consult with a financial advisor or real estate professional for personalized advice.
What is cash flow?
Cash flow is the net amount of cash and cash equivalents moving into or out of a business or property.
For more information, see the Fannie Mae Guide to Mortgage Cash Flow Analysis and the Investopedia definition of cash flow.